Banks, Banking, Credit unions, Mortgages, National banks, Savings associations,

Transcription

1 List of Subjects in 12 CFR Part 1003 Banks, Banking, Credit unions, Mortgages, National banks, Savings associations, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth above, the Bureau of Consumer Financial Protection proposes to amendamends Regulation C, 12 CFR part 1003, as set forth below: PART 1003 HOME MORTGAGE DISCLOSURE (REGULATION C) 1. The authority citation for part 1003 continues to read as follows: AUTHORITY: 12 U.S.C. 2803, 2804, 2805, 5512,

2 2. SectionEffective January 1, 2018, is amended by revising paragraph (c) to read as follows: Authority, purpose, and scope. * * * * * (c) Scope. This part applies to financial institutions as defined in (g). The regulationthis part requires a financial institution to reportsubmit data to the Bureau or to the appropriate Federal agency for the financial institution as defined in (a)(4), and to disclose certain data to the public, about covered loans for which the financial institution receives applications, or that it originates or purchases, and that are secured by a dwelling located in a State of the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico that it originates or purchases, or for which it receives applications; and to disclose certain data to the public. 3. Section is amended by adding paragraph numbers to the existing definitions, by adding paragraphs (d), (e), (k), (n), (o), and (q), and by revising newly designated paragraphs (b), (c), (f), (g), (h), (i), (l), and (p) to read as follows:effective January 1, 2017, is amended by revising paragraph (1)(iii) and adding paragraph (1)(v) under the paragraph titled financial institution to read as follows: Definitions. * * * * * Financial institution means: (1) * * * (iii) In the preceding calendar year, originated at least one home purchase loan (excluding 653

3 temporary financing such as a construction loan) or refinancing of a home purchase loan, secured by a first lien on a one- to four-family dwelling; * * * * * (v) In each of the two preceding calendar years, originated at least 25 home purchase loans, including refinancings of home purchase loans, that are not excluded from this part pursuant to (d); and 654

4 * * * * * 4. Effective January 1, 2018, is revised to read as follows: Definitions. * * * * * In this part: amended. (a) Act means the Home Mortgage Disclosure Act (HMDA) (12 U.S.C et seq.), as (b) Application. (1) In general. Application means an oral or written request for a covered loan that is made in accordance with procedures used by a financial institution for the type of credit requested. (2) Preapproval programs. A request for preapproval for a home purchase loan, other than a home purchase loan that will be an open-end line of credit, a reverse mortgage, or secured by a multifamily dwelling, is an application under this section if the request is reviewed under a program in which the financial institution, after a comprehensive analysis of the creditworthiness of the applicant, issues a written commitment to the applicant valid for a designated period of time to extend a home purchase loan up to a specified amount. The written commitment may not be subject to conditions other than: (i) Conditions that require the identification of a suitable property; (ii) Conditions that require that no material change has occurred in the applicant s financial condition or creditworthiness prior to closing; and (iii) Limited conditions that are not related to the financial condition or creditworthiness of the applicant that the financial institution ordinarily attaches to a traditional home mortgage application. 655

5 (c) Branch office means: 656

6 (1) Any office of a depository financial institution, as defined in paragraph (g)(1) of this section,bank, savings association, or credit union that is considered a branch by the Federal or State supervisory agency applicable to that financial institution, excluding automated teller machines and other free-standing electronic terminals; and (2) Any office of a nondepository financial institution, as defined in paragraph (g)(2) of this section,for-profit mortgage-lending institution (other than a bank, savings association, or credit union) that takes applications from the public for covered loans. A nondepository financialfor- profit mortgage-lending institution (other than a bank, savings association, or credit union) is also deemed to have a branch office in an MSA or in an MD, if, in the preceding calendar year, it received applications for, originated, or purchased five or more covered loans related to property located in that MSA or MD, respectively. (d) Closed-end mortgage loan means a debt obligationan extension of credit that is secured by a lien on a dwelling and that is not an open-end line of credit under paragraph (o) of this section, a reverse mortgage under paragraph (q) of this section, or excluded from this part pursuant to (c). (e) Covered loan means a transaction that is, as applicable, a closed-end mortgage loan under paragraph (d) of this section,or an open-end line of credit under paragraph (o) of this section, or a reverse mortgage under paragraph (q) of this sectionthat is not an excluded transaction under (c). (f) Dwelling means a residential structure, whether or not attached to real property. The term includes but is not limited to a detached home, an individual condominium or cooperative unit, a manufactured home or other factory-built home, or a multifamily residential structure or 657

7 community. (g) Financial institution means a depository financial institution or a nondepository financial institution, where: (1) Depository financial institution means a bank, savings association, or credit union that: (i) On the preceding December 31 had assets in excess of the asset threshold established and published annually by the Bureau for coverage by the Act, based on the year-to-year change 658

8 in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers, not seasonally adjusted, for each twelve month period ending in November, with rounding to the nearest million; (ii) On the preceding December 31, had a home or branch office in an MSA; (iii) In the preceding calendar year, originated at least one home purchase loan or refinancing of a home purchase loan, secured by a first lien on a one- to four-unit dwelling; (iv) Meets one or more of the following threetwo criteria: (A) The institution is Federallyfederally insured or regulated; or (B) TheAny loan referred to in paragraph (g)(1)(iii) of this section was insured, guaranteed, or supplemented by a Federal agency;, or(c) The loan referred to in paragraph (g)(1)(iii) of this section was intended by the institution for sale to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; and (v) Meets at least one of the following criteria: (A) In each of the two preceding calendar yearyears, originated at least 25 covered loans, excluding open- closed-end mortgage loans that are not excluded from this part pursuant to (c)(1) through (10); or (B) In each of the two preceding calendar years, originated at least 100 open-end lines of credit that are not excluded from this part pursuant to (c)(1) through (10); and (2) Nondepository financial institution means a for-profit mortgage-lending institution (other than a bank, savings association, or credit union) that: (i) On the preceding December 31, had a home or branch office in an MSA; and (ii) Meets at least one of the following criteria: 659

9 (A) In each of the two preceding calendar yearyears, originated at least 25 covered loans, excluding open- closed-end mortgage loans that are not excluded from this part pursuant to (c)(1) through (10); or 660

10 (B) In each of the two preceding calendar years, originated at least 100 open-end lines of credit that are not excluded from this part pursuant to (c)(1) through (10). * * * * * (h) [Reserved] (i) Home improvement loan means a covered loanclosed-end mortgage loan or an openend line of credit that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which itthe dwelling is located. (j) Home purchase loan means a coveredclosed-end mortgage loan or an open-end line of credit that is for the purpose, in whole or in part, of purchasing a dwelling. (k) Loan application register means a register in the format prescribed in appendix A to this part./application Register means both the record of information required to be collected pursuant to and the record submitted annually or quarterly, as applicable, pursuant to (a). (l) Manufactured home means any residential structure as defined under regulations of the U.S. Department of Housing and Urban Development establishing manufactured home construction and safety standards (24 CFR ). For purposes of (a)(5), the term also includes a multifamily dwelling that is a manufactured home community. * * * * * (m) Metropolitan Statistical Area (MSA) and Metropolitan Division (MD). (1) Metropolitan Statistical Area or MSA means a Metropolitan Statistical Area as defined by the U.S. Office of Management and Budget. (2) Metropolitan Division (MD) means a Metropolitan Division of an MSA, as defined by the U.S. Office of Management and Budget. (n) Multifamily dwelling means a dwelling, regardless of construction method, that 661

11 contains five or more individual dwelling units. (o) Open-end line of credit means a transactionan extension of credit that: 662

12 (1) Is secured by a lien on a dwelling; and (2) Is an open-end credit plan as defined in Regulation Z, 12 CFR (a)(20) of Regulation Z, but without regard to whether the credit is for personal, family, or household purposes, without regard to whether the person to whom credit is extended is a consumer, and without regard to whether the person extending credit isconsumer credit, as defined in (a)(12), is extended by a creditor, as those terms are defined under Regulation Z, 12 CFR partdefined in (a)(17), or is extended to a consumer, as defined in 1026; (2) Is secured by a lien on a dwelling, as defined under paragraph (f) of this section; (3) Is not a reverse mortgage under paragraph (q) of this section; and (4) Is not excluded from this part pursuant to (c) (a)(11). (p) Refinancing means a coveredclosed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower, in which both the existing debt obligation and the new debt obligation are secured by liens on dwellings. (q) Reverse mortgage means a transactionclosed-end mortgage loan or an open-end line of credit that:(1) Is is a reverse mortgage transaction as defined in Regulation Z, 12 CFR (a); and, but without regard to whether the security interest is created in a principal dwelling. (2) Is not excluded from this part pursuant to5. Effective January 1, 2018, (c).4. Section is amended by revising the section heading and adding new paragraph (c) to read as follows: Exempt institutions and excluded transactions. 663

13 * * * * * (c) Excluded transactions. The requirements of this part do not apply to: (1) A loanclosed-end mortgage loan or open-end line of credit originated or purchased by thea financial institution acting in a fiduciary capacity; (2) A loanclosed-end mortgage loan or open-end line of credit secured by a lien on unimproved land; (3) Temporary financing; (4) The purchase of an interest in a pool of closed-end mortgage loans or open-end lines of credit; 664

14 (5) The purchase solely of the right to service closed-end mortgage loans or open-end lines of credit; (6) The purchase of closed-end mortgage loans or open-end lines of credit as part of a merger or acquisition, or as part of the acquisition of all of the assets and liabilities of a branch office as defined in (c); (7) A closed-end mortgage loan or open-end line of credit, or an application for a closedend mortgage loan or open-end line of credit, for which the total dollar amount is less than $500; (8) The purchase of a partial interest in a coveredclosed-end mortgage loan; or openend line of credit; (9) A loanclosed-end mortgage loan or open-end line of credit used primarily for agricultural purposes.; 5. Section is amended by: (10) A closed-end mortgage loan or open-end line of credit that is or will be made primarily for a business or commercial purpose, unless the closed-end mortgage loan or open- end line of credit is a home improvement loan under (i), a home purchase loan under a. Revising the section heading; (j), or a refinancing under (p); b. Revising paragraphs (a) introductory text, (a)(1) through (7), (a)(9) through (11), (a)(12)(i), and (a)(13) and (14); c. Adding paragraphs (a)(15) through (39) and (b); d. Revising paragraph (b); e. Removing and reserving paragraphs (c)(1) through (3) and (d); and f. Adding paragraph (f). (11) A closed-end mortgage loan, if the financial institution originated fewer than

15 closed-end mortgage loans in each of the two preceding calendar years; or (12) An open-end line of credit, if the financial institution originated fewer than 100 open-end lines of credit in each of the two preceding calendar years. The revisions and addtions6. Effective January 1, 2018, , including its heading, is revised to read as follows: Compilation of reportable data. 666

16 (a) Data format and itemization. A financial institution shall collect data regarding applications for covered loans whichthat it receives, originations of covered loans on which it makes a credit decisionthat it originates, and covered loans that it purchases for each calendar year. A financial institution shall collect data regarding requests under a preapproval program, as defined in (b)(2), only if the preapproval request is denied, is approved by the financial institution but not accepted by the applicant, or results in the origination of a home purchase loan. The data collected shall include the following items: (1)(i) A universal loan identifier (ULI) for the covered loan or application that can be used to identify and retrieve the covered loan or application file. For covered loans or applications for which anyexcept for a purchased covered loan or application described in paragraphs (a)(1)(i)(d) and (E) of this section, the financial institution has previously reported a ULI under this part, the ULI shall consist of the ULI that was previously reported for the covered loan or application under this part. For all other covered loans and applications, the ULI shallshall assign and report a ULI that: (A) BeginBegins with the financial institution s Legal Entity Identifier described in(lei) that is issued by: (1) A utility endorsed by the LEI Regulatory Oversight Committee; or (a)(3); and (2) A utility endorsed or otherwise governed by the Global LEI Foundation (GLEIF) (or any successor of the GLEIF) after the GLEIF assumes operational governance of the global LEI system. (B) Follow the Legal Entity Identifier described in (a)(3)Follows the LEI with up to 2523 additional characters to identify the covered loan or application, which: 667

17 (1) May be letters, numerals, symbols, or a combination of any of theseletters and numerals; (2) Must be unique within the financial institution; and (3) Must not include any information that could be used to directly identify the applicant or borrower; and (C) Ends with a two-character check digit, as prescribed in appendix C to this part. 668

18 (D) For a purchased covered loan that any financial institution has previously assigned or reported with a ULI under this part, the financial institution that purchases the covered loan must use the ULI that was assigned or previously reported for the covered loan. (E) For an application that was previously reported with a ULI under this part and that results in an origination during the same calendar year that is reported in a subsequent reporting period pursuant to (a)(1)(ii), the financial institution may report the same ULI for the origination that was previously reported for the application. (ii) Except for purchased covered loans, the date the application was received or the date shown on the application form. (2) Whether the covered loan or application is insured under title II of the Nationalis, or in the case of an application would have been, insured by the Federal Housing Administration, guaranteed by the Veterans Administration, or guaranteed by the Rural Housing Service or the Farm Service Agency. Housing Act, is insured under title V of the Housing Act of 1949, or is guaranteed under chapter 37 of title 38 of the United States Code. (3) Whether the covered loan is, or the application is for, a home purchase loan, a home improvement loan, a refinancing, a cash-out refinancing, or for a purpose other than home purchase, home improvement, refinancing, or cash-out refinancing. (4) Whether the application isor covered loan involved a request for a preapproval forof a home purchase loan under a preapproval program. (5) Whether the construction method for the dwelling related to the property identified in paragraph (a)(9) of this section is site -built or a manufactured home. (6) Whether the property identified in paragraph (a)(9) of this section is or will be used 661

19 by the applicant or borrower as a principal residence, as a second residence, or as an investment property. (7) The amount of the covered loan or the amount applied for, as applicable. 662

20 (i) For a closed-end mortgage loan, other than a purchased loan or, an assumption, the amount of the covered loan isor a reverse mortgage, the amount to be repaid as disclosed on the legal obligation. For a purchased closed-end mortgage loan or an assumption of a closed-end mortgage loan, the amount of the covered loan is the unpaid principal balance on the covered loan or assumption at the time of purchase or assumption. (ii) For an open-end line of credit, including a purchased open-end line of credit or an assumption of another than a reverse mortgage open-end line of credit, the amount of the covered loan is the amount of credit available to the borrower under the terms of the plan. (iii) For a reverse mortgage, the amount of the covered loan is the initial principal limit, as determined pursuant to section 255 of the National Housing Act (12 U.S.C. 1715z-20) and implementing regulations and mortgagee letters prescribedissued by the U.S. Department of Housing and Urban Development. * * * * * (8) The following information about the financial institution s action: (i) The action taken by the financial institution, recorded as one of the following: (A) Whether a covered loan was originated or purchased; (B) Whether an application for a covered loan that did not result in the origination of a covered loan was approved but not accepted, denied, withdrawn by the applicant, or closed for incompleteness; and (C) Whether a preapproval request that did not result in the origination of a home purchase loan was denied or approved but not accepted. (ii) The date of the action taken by the financial institution. (9) The following information about the location of the property securing the covered 663

21 loan or, in the case of an application, proposed to secure the covered loan: (i) The postalproperty address; and 664

22 (ii) If the property is located in an MSA or MD in which the financial institution has a home or branch office, or if the institution is subject to paragraph (e) of this section, the location of the property by: (A) State; (B) County;(C) MSA or MD; and (DC) Census tract if the property is located in a county with a population of more than 30,000 according to the most recent decennial census conducted by the U.S. Census Bureau. (10) The following information about the applicant or borrower: (i) Ethnicity, race, sex, and age; andand sex, and whether this information was collected on the basis of visual observation or surname; (ii) GrossAge; and (iii) Except for covered loans or applications for which the credit decision did not consider or would not have considered income, the gross annual income relied on in making the credit decision requiring consideration of income or, if a credit decision requiring consideration of income was not made, the gross annual income collected as part ofrelied on in processing the application process. (11) The type of entity purchasing a covered loan that the financial institution originates or purchases and then sells within the same calendar year. (12)(i) For covered loans subject to Regulation Z, 12 CFR part 1026, other than assumptions, purchased covered loans, and reverse mortgages, the difference between the covered loan s annual percentage rate and the average prime offer rate for a comparable transaction as of the date the interest rate is set. 665

23 * * * * * (ii) Average prime offer rate means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a 666

24 representative sample of creditors for mortgage loans that have low-risk pricing characteristics. The Bureau publishes average prime offer rates for a broad range of types of transactions in tables updated at least weekly, as well as the methodology the Bureau uses to derive these rates. (13) For covered loans subject to the Home Ownership and Equity Protection Act of 1994, as implemented in Regulation Z, 12 CFR , whether the covered loan is a high-cost mortgage under Regulation Z, 12 CFR (a), and the reason that the covered loan is a high- cost mortgage, if applicable. (14) The priority of the lien againstlien status (first or subordinate lien) of the property identified under paragraph (a)(9) of this section. (15)(i) Except for purchased covered loans, the credit score or scores relied on in making the credit decision and the name and version of the scoring model used to generate each credit score. (ii) CreditFor purposes of this paragraph (a)(15), credit score has the meaning set forth in 15 U.S.C. 1681g(f)(2)(A). if applicable. (16) The principal reason(s) or reasons the financial institution denied the application, (17) For covered loans or applications subject to the Home Ownership and Equity Protection Act of 1994, as implemented in Regulation Z, 12 CFR , or covered loans orapplications subject to Regulation Z, 12 CFR (e)(2)(iii), other than purchased covered loansc), the following information: (i) If a disclosure is provided for the covered loan pursuant to Regulation Z,

25 CFR (f), the amount of total loan costs, as disclosed pursuant to Regulation Z, 12 CFR (f)(4); or (ii) If the covered loan is not subject to the disclosure requirements in Regulation Z, 12 CFR (f), and is not a purchased covered loan, the total points and fees payablecharged in 668

26 connection with the covered loan or application, expressed in dollars and calculated in accordance withpursuant to Regulation Z, 12 CFR (b)(1) or (2), as applicable. (18) For covered loans subject to the disclosure requirements in Regulation Z, 12 CFR (f), the total of all itemized amounts that are designated borrower-paid at or before closing, expressed in dollars, as disclosed pursuant to Regulation Z, 12 CFR (f)(1). (19) For covered loans subject to the disclosure requirements in Regulation Z, 12 CFR (f), the points designated as paid to the creditor to reduce the interest rate, expressed in dollars, as described in Regulation Z, 12 CFR (f)(1)(i), and disclosed pursuant to Regulation Z, 12 CFR (f)(1). (20) For covered loans subject to the disclosure requirements in Regulation Z, 12 CFR (f), other than purchased covered loans, the interest rate that the borrower would receive if the borrower paid no bona fide discount points, as calculatedthe amount of lender credits, as disclosed pursuant to Regulation Z, 12 CFR (h)(3). (21) The interest rate that is or would be applicable to the approved application, or to the covered loan at closing or account opening. (22) Except forfor covered loans or applications subject to Regulation Z, 12 CFR part 1026, other than reverse mortgages or purchased covered loans, the term in months of any prepayment penalty, as defined in Regulation Z, 12 CFR (b)(6)(i) or (ii), as applicable. (23) For aexcept for purchased covered loan that is not, or an application that is not for, a reverse mortgage,loans, the ratio of the applicant s or borrower s total monthly debt to the total monthly income relied on in making the credit decision. 669

27 (24) TheExcept for purchased covered loans, the ratio of the total amount of debt secured by the property to the value of the property, determined as follows: relied on in making the credit decision. (i) For a covered loan that is a home-equity line of credit, by dividing the sum of the unpaid principal balance of the first mortgage, the full amount of any home-equity line of credit (whether drawn or undrawn), and the balance of any other subordinate financing by the property value identified in paragraph (a)(28) of this section; (ii) For a covered loan that is not a home-equity line of credit, by dividing the combined unpaid principal balance amounts of the first and all subordinate mortgages, excluding undrawn home-equity lines of credit amounts, by the property value identified in paragraph (a)(28) of this section. (25) The scheduled number of months after which the legal obligation will mature or terminate or would have matured or terminated. 670

28 (26) The number of months, or proposed number of months in the case of an application, until the first date the interest rate may change after loan originationclosing or account opening. (27) Whether the contractual terms include or would have included any of the following: (i) A balloon payment as defined in Regulation Z, 12 CFR (s)(5)(i); (ii) Interest-only payments as defined in Regulation Z, 12 CFR (s)(7)(iv); (iii) A contractual term that would cause the covered loan to be a negative amortization loan as defined in Regulation Z, 12 CFR (s)(7)(v); or (iv) Any other contractual term that would allow for payments other than fully amortizing payments, as defined in Regulation Z, 12 CFR (b)(2), during the loan term, other than the contractual terms described in paragraphsthis paragraph (a)(27)(i), (ii), and (iii) of this section. (28) The value of the property securing the covered loan or, in the case of an application, proposed to secure the covered loan relied on in making the credit decision. (29) If the dwelling related to the property identified in paragraph (a)(9) of this section is a manufactured home and not a multifamily dwelling, whether it is legally classified as real property or as personal propertythe covered loan is, or in the case of an application would have been, secured by a manufactured home and land, or by a manufactured home and not land. (30) If the dwelling related to the property identified in paragraph (a)(9) of this section is a manufactured home and not a multifamily dwelling, whether the applicant or borrower owns: (i) Owns the land on which it is or will be located or, in the case of an application, did or would have owned the land on which it would have been located, through a direct or indirect ownership interest; or (ii) Leases or, in the case of an application, leases or would have leased the land through a paid or unpaid leasehold. 666

29 (31) The number of individual dwelling units related to the property securing the covered loan or, in the case of an application, proposed to secure the covered loan. (32) If the property securing the covered loan or, in the case of an application, proposed to secure the covered loan includes a multifamily dwelling, the number of individual dwelling units related to the property that are income-restricted pursuant to Federal, State, or local affordable housing programs. (33) Except for purchased covered loans, the following information about the application channel of the covered loan or application: (i) Whether the applicant or borrower submitted the application for the covered loan directly to the financial institution; and (ii) Whether the obligation arising from the covered loan was, or in the case of an application, would have been initially payable to the financial institution. (34) For a covered loan or application, the unique identifier assigned by the Nationwide Mortgage Licensing System and Registry (NMLSR ID) for the mortgage loan originator, as defined in Regulation G, 12 CFR , or Regulation H, 12 CFR , as applicable. (35)(i) Except for purchased covered loans, the name of the automated underwriting system used by the financial institution to evaluate the application and the recommendationresult generated by that automated underwriting system. (ii) For purposes of this sectionparagraph (a)(35), an automated underwriting system means an electronic tool developed by a securitizer, Federal government insurer, or Federal government guarantor that provides a recommendationresult regarding the credit risk of the applicant and whether the applicationcovered loan is eligible to be originated, purchased, insured, or guaranteed by that securitizer, Federal 667

30 government insurer, or Federal government guarantor. 668

31 (36) Whether the covered loan is, or the application is for, a reverse mortgage, as defined in (q), and whether the reverse mortgage is an open- or closed-end transaction. (37) Whether the covered loan is, or the application is for, an open-end line of credit, as defined in (o), and whether. (38) Whether the covered loan is, or the application is for, a home-equity line of credit, as defined in (h). a covered loan that will be, (38) Whether the covered loan is subject to the ability-to-repay provisions of Regulation Z, 12 CFR , and whether the covered loan is a qualified mortgage, as described under Regulation Z, 12 CFR (e) or (f). (39) For a home-equity line of credit and an open-end reverse mortgage, the amount of the draw on the covered loan, if any, made at account opening.made primarily for a business or commercial purpose. (b) Collection of data on ethnicity, race, sex, age, and income. (1) A financial institution shall collect data about the ethnicity, race, sex, and agesex of the applicant or borrower as prescribed in appendices A andappendix B to this part. (2) Ethnicity, race, sex, age, and income data may but need not be collected for covered loans purchased by thea financial institution. (c)-(d) [Reserved] (e) Data reporting for banks and savings associations that are required to report data on small business, small farm, and community development lending under CRA. Banks and savings associations that are required to report data on small business, small farm, and community development lending under regulations that implement the Community Reinvestment Act of 1977 (12 U.S.C et seq.) shall also collect the information required by paragraph 4(a)(9) of this section for property located outside MSAs and MDs in which the institution has a home or 669

32 branch office, or outside any MSA. (f) Quarterly recording of data. A financial institution shall record the data collected pursuant to this section on a loan /application register within 30 calendar days after the end of the calendar quarter in which final action is taken (such as origination or purchase of a covered loan, sale of a covered loan in the same calendar year it is originated or purchased, or denial or withdrawal of an application). 6. Section 670

33 7. Effective January 1, 2018, is amended by revising paragraph (a)(1), adding paragraphs (a)(3) and(4), and revising paragraphs (b) through (f) to read as follows: Disclosure and reporting. * * * * * (b) Disclosure statement. (1) The Federal Financial Institutions Examination Council (FFIEC) will make available a disclosure statement based on the data each financial institution submits for the preceding calendar year pursuant to paragraph (a) of this section. (2) No later than three business days after receiving notice from the FFIEC that a financial institution s disclosure statement is available, the financial institution shall make available to the public upon request at its home office, and each branch office physically located in each MSA and each MD, a written notice that clearly conveys that the institution s disclosure statement may be obtained on the Bureau s website at (c) Modified loan/application register. (1) A financial institution shall make available to the public upon request at its home office, and each branch office physically located in each MSA and each MD, a written notice that clearly conveys that the institution s loan/application register, as modified by the Bureau to protect applicant and borrower privacy, may be obtained on the Bureau s website at (2) A financial institution shall make available the notice required by paragraph (c)(1) of this section following the calendar year for which the data are collected. (d) Availability of written notices. (1) A financial institution shall make the notice required by paragraph (c) of this section available to the public for a period of three years and the notice required by paragraph (b)(2) of this section available to the public for a period of five 671

34 years. An institution shall make these notices available during the hours the office is normally open to the public for business. (2) A financial institution may make available to the public, at its discretion and in addition to the written notices required by paragraphs (b)(2) or (c)(1) of this section, as applicable, its disclosure statement or its loan/application register, as modified by the Bureau to protect applicant and borrower privacy. A financial institution may impose a reasonable fee for any cost incurred in providing or reproducing these data. (e) Posted notice of availability of data. A financial institution shall post a general notice about the availability of its HMDA data in the lobby of its home office and of each branch office physically located in each MSA and each MD. This notice must clearly convey that the institution s HMDA data is available on the Bureau s website at (f) Aggregated data. Using data submitted by financial institutions pursuant to paragraph (a) of this section, the FFIEC will make available aggregate data for each MSA and MD, showing lending patterns by property location, age of housing stock, and income level, sex, ethnicity, and race. 8. In , as revised effective January 1, 2018: a. Paragraph (a) is revised. New paragraph (a)(1)(ii) is effective January 1, The remainder of the revisions to paragraph (a) are effective January 1, 2019; b. Effective January 1, 2019, paragraphs (b) and (f) are revised, and paragraphs (c), (d), and (e) are republished; The revisions to read as follows: Disclosure and reporting. 672

35 (a) Reporting to agency. (1)(i) Except as described in paragraph (a)(1)(ii) of this section, by (1)(i) Annual reporting. By March 1 following the calendar year for which data are compiledcollected and recorded as required by , a financial institution shall submit its completeannual loan /application register in electronic format to the Bureau or to the appropriate Federal agency forat the address identified by such agency. An authorized representative of the financial institution in accordance with the instructions in appendix A to this partwith knowledge of the data submitted shall certify to the accuracy and completeness of data submitted pursuant to this paragraph (a)(1)(i). The financial institution shall retain a copy of its completeannual loan /application register submitted pursuant to this paragraph (a)(1)(i) for its records for at least three years. (ii) Effective [x], withinquarterly reporting. Within 60 calendar days after the end of each calendar quarter except the fourth quarter, a financial institution that reported for the preceding calendar year at least 75,00060,000 covered loans, and applications, andcombined, excluding purchased covered loans, combined, for the preceding calendar year shall submit to the appropriate Federal agency its loan /application register containing all data required to be recorded for that quarter pursuant to (f). The financial institution shall submit its quarterly loan /application register pursuant to this paragraph (a)(1)(ii) in electronic format toat the Bureau or toaddress identified by the appropriate Federal agency for the financial institution in accordance with the instructions in appendix A to this part. The financial institution shall retain a copy of its complete loan application register for its records for at least three yearsinstitution. (iii) An officer of the financial institution shall certify to the accuracy of data 673

36 submitted.when the last day for submission of data prescribed under this paragraph (a)(1) falls on a Saturday or Sunday, a submission shall be considered timely if it is submitted on the next succeeding Monday. (2) A financial institution that is a subsidiary of a bank or savings association shall complete a separate loan/application register. The subsidiary shall submit the loan/application register, directly or through its parent, to the appropriate Federal agency for the subsidiary s parent at the address identified by the agency. (3) When reporting its data, aa financial institution shall provide a Legal Entity Identifierwith its submission: 674

37 (i) Its name; (LEI) for the financial institution issued by:ii) The calendar year the data submission covers pursuant to (a)(1)(i) or calendar quarter and year the data submission covers pursuant to (a)(1)(ii); (iii) The name and contact information of a person who may be contacted with questions about the institution s submission; (iv) Its appropriate Federal agency; (i) A utility endorsed by the LEI Regulatory Oversight Committee; or (v) The total number of entries contained in the submission; (vi) Its Federal Taxpayer Identification number; and (vii) Its Legal Entity Identifier (LEI) as described in (a)(1)(i)(A). (ii) A utility endorsed or otherwise governed by the Global LEI Foundation (GLEIF) (or any successor of the GLEIF) after the GLEIF assumes operational governance of the global LEI system. (4) When reporting its data, a financial institution shall identify its parent company, if any.for purposes of paragraph (a) of this section, appropriate Federal agency means the appropriate agency for the financial institution as determined pursuant to section 304(h)(2) of the Home Mortgage Disclosure Act (12 U.S.C. 2803(h)(2)) or, with respect to a financial institution subject to the Bureau s supervisory authority under section 1025(a) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5515(a)), the Bureau. (5) Procedures for the submission of data pursuant to paragraph (a) are available at (b) Disclosure statement. (1) The Federal Financial Institutions Examination Council 675

38 (FFIEC) will make available a disclosure statement based on the data each financial institution submits for the preceding calendar year pursuant to paragraph (a)(1)(i) of this section. (2) No later than three business days after receiving notice from the FFIEC that itsa financial institution s disclosure statement is available, athe financial institution shall make its disclosure statement available to the public by making availableupon request at its home office, and each branch office physically located 676

39 in each MSA and each MD, a written notice that clearly conveys that the institution s disclosure statement may be obtained on the FFIEC website and that includes the FFIECBureau s website address.at (c) Public disclosure of modifiedmodified loan /application register. (1) A financial institution shall make its loan application register available to the public after, for each entry: (i) Removing the information required to be reported under (a)(1), the date required to be reported under (a)(8), the postal address required to be reported under (a)(9), the age of the applicant or borrower required to be reported underupon request at its home office, and each branch office physically located in each MSA and each MD, a written notice that clearly conveys that the institution s loan/application register, as modified by the Bureau to protect applicant and borrower privacy, may be obtained on the Bureau s website at (a)(10), and the information required to be reported under (a)(15) and (a)(17) through (39); and thousand. (ii) Rounding the information required to be reported under (a)(7) to the nearest (2) A financial institution shall make available its loan application register, modified asthe notice required by paragraph (c)(1) of this section, following the calendar year for which the data are compiled, as follows: (i) By March 31 for a request received on or before March 1; and (ii) Within 30 calendar days for a request received after March 1. (3) The modified loan application register made available pursuant to this paragraph (c)need contain data relating to only the MSA or MD for which the request is madecollected. 677

40 (d) Availability of datawritten notices. (1) A financial institution shall make its modified loan application registerthe notice required by paragraph (c) of this section available to the public for a period of three years and its disclosure statementthe notice required by paragraph (b)(2) of this section available to the public for a period of five years. An institution shall make its datathese notices available during the hours the office is normally open to the public for business. (2) A financial institution may make available to the public, at its discretion and in addition to the written notices required by paragraphs (b)(2) or (c)(1) of this section, as applicable, its disclosure statement or its loan/application register, as modified by the Bureau to protect applicant and borrower privacy. A financial institution may impose a reasonable fee for any cost incurred in providing or reproducing itsthese data. (e) NoticePosted notice of availability of data. A financial institution shall post a general notice about the availability of its HMDA data in the lobby of its home office and of each branch office physically located in each MSA and each MD. This notice must clearly convey that the 678

41 institution s HMDA data is available on the Bureau s website at (f) Aggregated data. Using the data submitted by financial institutions pursuant to paragraph (a)(1)(i) of this section, the FFIEC will make available reports for individual institutions and reports of aggregate data for each MSA and MD, showing lending patterns by property location, age of housing stock, and income level, sex, ethnicity, and race. These reports will be made available to the public online at the FFIEC s website ( 9. Effective January 1, 2019, is revised to read as follows: Enforcement. (a) Administrative enforcement. A violation of the Act or this part is subject to administrative sanctions as provided in section 305 of the Act (12 U.S.C. 2804), including the imposition of civil money penalties, where applicable. Compliance is enforced by the agencies listed in section 305 of the Act. (b) Bona fide errors. (1) An error in compiling or recording data for a covered loan or application is not a violation of the Act or this part if the error was unintentional and occurred despite the maintenance of procedures reasonably adapted to avoid such an error. (2) An incorrect entry for a census tract number is deemed a bona fide error, and is not a violation of the Act or this part, provided that the financial institution maintains procedures reasonably adapted to avoid such an error. (c) Quarterly recording and reporting. (1) If a financial institution makes a good-faith effort to record all data required to be recorded pursuant to (f) fully and accurately within 30 calendar days after the end of each calendar quarter, and some data are nevertheless 679

42 inaccurate or incomplete, the inaccuracy or omission is not a violation of the Act or this part 680

43 7.provided that the institution corrects or completes the data prior to submitting its annual loan/application register pursuant to (a)(1)(i). (2) If a financial institution required to comply with (a)(1)(ii) makes a good-faith effort to report all data required to be reported pursuant to (a)(1)(ii) fully and accurately within 60 calendar days after the end of each calendar quarter, and some data are nevertheless inaccurate or incomplete, the inaccuracy or omission is not a violation of the Act or this part provided that the institution corrects or completes the data prior to submitting its annual loan/application register pursuant to (a)(1)(i). 10. Effective January 1, 2018, in Appendix A to Part 1003 is: a. New subheading Transition Requirements for Data Collected in 2017 and Submitted in 2018 and paragraph 1 under that subheading are added; b. Under the subheading Appropriate Federal Agencies for HMDA Reporting, paragraphs A and B are revised, and paragraph C is added; The additions and revisions to read as follows: APPENDIX A TO PART 1003 FORM AND INSTRUCTIONS FOR COMPLETION OF HMDA LOAN/APPLICATION REGISTER PAPERWORK REDUCTION ACT NOTICE This report is required by law (12 U.S.C and 12 CFR 1003). An agency may not conduct or sponsor, and an organization is not required to respond to, a collection of information unless it displays a valid Office of Management and Budget (OMB) Control Number. See 12 CFR (a) for the valid OMB Control Numbers applicable to this information collection. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the respective 681

44 agencies and to OMB, Office of Information and Regulatory Affairs, Paperwork Reduction Project, Washington, DC Be sure to reference the applicable agency and the OMB Control Number, as found in 12 CFR (a), when submitting comments to OMB. I. INSTRUCTIONS FOR COMPLETION OF LOAN APPLICATION REGISTER * * * * * TRANSITION REQUIREMENTS FOR DATA COLLECTED IN 2017 AND SUBMITTED IN Instructions and designations. This part to this appendix contains instructions for the completion of the loan application register. Each instruction in this appendix is identified by a number and the regulatory section and paragraph which provides the reporting requirement. The instructions are designated according to the particular regulatory provision addressed. For example, the first instruction in this appendix for reporting the action taken under (a)(8) may be cited as instruction 4(a)(8)-1. This paragraph may be cited as instruction I- 1.The instructions for completion of the loan/application register in part I of this appendix applies to data collected during the 2017 calendar year and reported in Part I of this appendix does not apply to data collected pursuant to the amendments to Regulation C effective January 1, Paragraph 4(a)(1)(i) ULI. 1. Enter the ULI assigned to the covered loan or application. Paragraph 4(a)(1)(ii) Date Application Received. 1. Enter the date the application was received or the date shown on the application form by year, month, and day, using numerals in the form YYYYMMDD. Enter NA for covered loans purchased by your institution. Paragraph 4(a)(2) Loan or Application Type. 1. Indicate the type of covered loan or application by entering the applicable Code from 682

45 the following: Housing Act. Code 1 Conventional Code 2 FHA Code 3 VA Code 4 USDA Rural Development a. Use Code 2 if the covered loan or application is insured under title II of the National b. Use Code 3 if the covered loan or application is guaranteed under chapter 37 of title 38 of the United States Code. Act of c. Use Code 4 if the covered loan or application is insured under title V of the Housing d. Use Code 1 if the covered loan or application is not insured under title II of the National Housing Act, not insured under title V of the Housing Act of 1949, and not guaranteed under chapter 37 of title 38 of the United States Code. Paragraph 4(a)(3) Purpose of Loan or Application. 1. Indicate the purpose of the loan or application by entering the applicable Code from the following: Code 1 Home purchase Code 2 Home improvement Code 3 Refinancing Code 4 Other a. For refinancings, enter Code 4 if, under the terms of the agreement, you were unconditionally obligated to refinance the obligation, or you were obligated to refinance the 683

46 obligation subject to conditions within the borrower s control. Paragraph 4(a)(4) Preapproval. 1. Indicate whether the application or covered loan involved a request for preapproval for a home purchase loan by entering the applicable Code from the following: Code 1 Preapproval requested Code 2 Preapproval not requested Code 3 Not applicable a. Enter Code 1 if your institution has a preapproval program as defined in (b)(2) and the applicant requests a preapproval for a home purchase loan. Do not use Code 1 if a request for preapproval is withdrawn or for requests for preapproval that are closed for incompleteness; such preapproval requests are not reported under HMDA as implemented by Regulation C. b. Enter Code 2 if your institution has a preapproval program as defined in (b)(2) but the applicant does not request a preapproval. c. Enter Code 3 if your institution does not have a preapproval program as defined in (b)(2). d. Enter Code 3 for applications for or originations of home improvement loans, refinancings, open-end lines of credit, home-equity lines of credit, reverse mortgages, and for purchased loans. Paragraph 4(a)(5) Construction Method. 1. Indicate the construction method for the dwelling related to the covered loan or application by entering the applicable Code from the following: Code 1 Site Built 684